Question

In: Accounting

At December 31, 20X7, Big Corporation reports the following stockholders' equity on its balance sheet. Big...

At December 31, 20X7, Big Corporation reports the following stockholders' equity on its balance sheet. Big uses the cost method for treasury stock accounting. The company held no stock in treasury at this date.

Preferred Stock, 8%, $20 par, cumulative, non-participating

$3,000,000

Common Stock, $5 par

10,000,000

Paid-in Capital in Excess of Par-Preferred

200,000

Paid-in Capital in Excess of Par-Common

27,000,000

Retained Earnings

4,500,000

During 20X8, the following transactions affected stockholders' equity:

Jan.    1     30,000 shares of preferred stock issued at $22 per share. Feb.    1          50,000 shares of common stock issued at $20 per share. Mar. 15 2-for-1 split on common stock

April 15 4,000 shares of common treasury stock purchased at $21 per share. June 10 1,500 shares of treasury stock reissued at $22 per share.

Dec.   30 The preferred dividend of $288,000 is paid, and a common dividend of SOC per share is

declared; to be paid on March 1, 20X9. Assume no dividends in arrears.

Determine the following amounts reported for Big Corporation at 12/31/20X8.

a) Number of Preferred Stock shares outstanding;

b) Number of Common Stock shares outstanding

Solutions

Expert Solution

Preferred stock Common stock
Opening balance $3,000,000/$20 = 150,000 $10,000,000/$5 = 2,000,000
Shares issued on Jan 1                                          30,000
Shares issued on Feb 1                                              50,000
Mar 15, stock split (2,000,000+50,000)                                        2,050,000
Buyback of shares on April 15                                              (4,000)
Resale of treasury stock on June 10                                                1,500
Total number of shares outstanding                                       180,000                                        4,097,500

You can reach me over comment box if you have any doubts. Please rate this answer

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

The stockholders' equity section on the December 31 balance sheet of Chemfast Corporation reported the following...
The stockholders' equity section on the December 31 balance sheet of Chemfast Corporation reported the following amounts: Contributed Capital Preferred Stock (par $20; authorized 10,000 shares, ? issued, of which 1,000 shares are held as treasury stock) $ 116,000 Additional Paid-in Capital, Preferred 17,690 Common Stock (no-par; authorized 20,000 shares, issued and outstanding 6,600 shares) 699,600 Retained Earnings 36,000 Treasury Stock, 1,000 Preferred shares at cost 9,800 Assume that no shares of treasury stock have been sold in the past....
The stockholders’ equity section on the December 31, 2014, balance sheet of American Corporation follows: Stockholders’...
The stockholders’ equity section on the December 31, 2014, balance sheet of American Corporation follows: Stockholders’ Equity Contributed capital    Preferred stock (par $21; authorized 17,000 shares, ? issued,      of which 700 shares are held as treasury stock) $ 126,000    Common stock (no-par; authorized 24,000 shares, issued       and outstanding 9,000 shares) 801,000    Contributed capital (includes $3,000 from treasury      stock transactions) 15,000 Retained earnings 48,000 Cost of treasury stock, preferred (16,800 ) Required: 1. Calculate the number of shares of preferred stock...
The stockholders' equity section on the December 31 balance sheet of Hadley Corporation reported the following amounts:
  The stockholders' equity section on the December 31 balance sheet of Hadley Corporation reported the following amounts: Preferred Stock (par $50; authorized 10,000 shares, ? issued 322,700 Additional Paid-in Capital, Preferred 18,962 Common Stock (no-par; authorized 20,000 shares, issued and outstanding 5,300 shares) 58,784 Retained Earnings 160,732 Treasury Stock, 1,000 Preferred shares at cost 50,355 What is the total paid in capital for Hadley Corporation?   Shepherd Company’s Stockholder’s equity is as follows: Common Stock, $ 1 par           $13,557 Additional...
Analysis of Stockholders' Equity The Stockholders' Equity section of the December 31, 2017, balance sheet of...
Analysis of Stockholders' Equity The Stockholders' Equity section of the December 31, 2017, balance sheet of Eldon Company appeared as follows: Preferred stock, $40 par value, 5,000 shares authorized, ? shares issued $200,000 Common stock, ? par, 10,000 shares authorized, 10,000 shares issued 100,000 Additional paid-in capital—Preferred 9,000 Additional paid-in capital—Common 800,000 Additional paid-in capital—Treasury stock 2,000 Total contributed capital $1,111,000 Retained earnings 39,000 Treasury stock, preferred, 100 shares (3,300) Total stockholders’ equity $ ? Required: Determine the following items...
Kohler Corporation reports the following components of stockholders’ equity on December 31, 2016:
  Kohler Corporation reports the following components of stockholders’ equity on December 31, 2016:   Common stock—$20 par value, 100,000 shares authorized,50,000 shares issued and outstanding $ 1,000,000 Paid-in capital in excess of par value, common stock   80,000 Retained earnings   430,000 Total stockholders' equity $ 1,510,000   In year 2017, the following transactions affected its stockholders’ equity accounts. Jan.   1   Purchased 4,500 shares of its own stock at $20 cash per share. Jan.   5  ...
The Stockholders’ Equity section of the Balance Sheet of Carpenter Corporation on December 31, 2015, showed...
The Stockholders’ Equity section of the Balance Sheet of Carpenter Corporation on December 31, 2015, showed Cumulative Preferred 9% Stock, $45 par (1,303 shares authorized, 550 shares issued); Common Stock, $23 par (28,910 shares authorized, 14,910 shares issued); and Retained Earnings of $1,074. The Notes to the Financial Statements in the Annual Corporate Report for 2015 indicate that the market values of the stock are $40 per share (Cumulative Preferred) and $17 per share (Common). Forecasts in the Annual Report...
The Stockholders’ Equity section of the Balance Sheet of Carpenter Corporation on December 31, 2015, showed...
The Stockholders’ Equity section of the Balance Sheet of Carpenter Corporation on December 31, 2015, showed Cumulative Preferred 8% Stock, $48 par (1,220 shares authorized, 524 shares issued); Common Stock, $23 par (28,895 shares authorized, 10,295 shares issued); and Retained Earnings of $1,076. The Notes to the Financial Statements in the Annual Corporate Report for 2015 indicate that the market values of the stock are $42 per share (Cumulative Preferred) and $18 per share (Common). Forecasts in the Annual Report...
The Stockholders’ Equity section of the Balance Sheet of Carpenter Corporation on December 31, 2015, showed...
The Stockholders’ Equity section of the Balance Sheet of Carpenter Corporation on December 31, 2015, showed Cumulative Preferred 9% Stock, $50 par (1,806shares authorized, 500 shares issued); Common Stock, $20 par (25,271 shares authorized, 9,338 shares issued); and Retained Earnings of $1,116. The Notes to the Financial Statements in the Annual Corporate Report for 2015 indicate that the market values of the stock are $42 per share (Cumulative Preferred) and $17per share (Common). Forecasts in the Annual Report also indicate...
The stockholders' equity section of Pats Corporation's balance sheet as of December 31, 2019 is as...
The stockholders' equity section of Pats Corporation's balance sheet as of December 31, 2019 is as follows: Stockholders' Equity Common stock, no par value; authorized, 20,000,000 shares; Issued and outstanding, 4,000,000 shares                                      $32,000,000 Retained earnings                                                                              55,000,000                                                                                                                  $87,000,000 The following events occurred during 2020: Jan. 15 45,000 shares of authorized and unissued common stock sold for $8 per share.            Jan. 26 Declared a cash dividend of 12 cents per share, payable February 25 to stock-holders of record on February...
The stockholders' equity section of Benton Corporation's balance sheet as of December 31, 2018 is as...
The stockholders' equity section of Benton Corporation's balance sheet as of December 31, 2018 is as follows: Stockholders' Equity Common stock, $5 par value; authorized, 2,000,000 shares; issued, 400,000 shares $2,000,000 Paid-in capital in excess of par 850,000 Retained earnings 3,000,000 $5,850,000 The following events occurred from January to August during 2019: 1. Jan. 5 10,000 shares of authorized and unissued common stock were sold for $8 per share. 2. Jan. 16 Purchase back 1,000 treasury shares at $10 per...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT